Buru Energy Ltd · ASX:BRU
Buru Energy — Investor Presentation (January 2014)
25 slides from Buru Energy's investor presentation, Jan 31, 2014
Slide 1: Focusing on West Australia's Energy Future
Focusing on West Australia’s Energy Future www.buruenergy.com 31 January 2014
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer This document has been prepared by Buru Energy Limited ABN 71 130 651 437 (“Buru"). This presentation contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements are reaso
Slide 3: Overview
Overview Highlights and Challenges Corporate Summary Ungani Development & Potential Laurel Wet Gas Exploration Program and Funding Outlook 2
Slide 4: Highlights & Challenges
Highlights & Challenges 2013 – consolidation & capability 2014 - On the Pathway to delivery build • Ungani EPT commenced • Putting in place key success – Ungani 2 producing strongly factors – Ungani 1 dual completion clean-up • Stakeholder alignment under way • Funding – 1st load out of 30000 bbls c
Slide 5: Company Overview
Company Overview Shareholder spread Corporate details Index S&P/ASX 200 ASX Code BRU Shares on issue ~298M Current share price ~A$1.85 Market capitalisation ~A$551M Cash on hand (at 31 Dec 2013) ~A$60M (no debt) • Share Register – Tightly held, recent placement has assisted greater representation by
Slide 6: Highly Experienced & Balanced Board
Highly Experienced & Balanced Board Strong mix of technical, commercial, legal & corporate history Graham Riley • Previously founding Non-Executive Director of ARC Energy Limited and Adelphi Energy Limited Independent • Former Chairman of Giralia Resources NL, and responsible for the spin-off of fiv
Slide 7: Balanced Portfolio & Sustainable Growth
Balanced Portfolio & Sustainable Growth High Value Oil, Major Gas Appraisal & Quality Exploration • Ungani - Significant new oil discovery • Laurel Formation - Regional 9.9 mmbls gross 2C Contingent accumulation of wet gas Resources (4.5mmbls net to Buru), independent estimate; • 2013-2015 systema
Slide 8: Outstanding acreage position
Outstanding acreage position Focus on highest value areas whilst progressing remainder Long term position with tenure certainty • 64,000 sq kms continuous basin wide coverage • Oil – near term cash flow with follow-up • Gas – potential world scale resource of strategic importance • Exploration – hig
Slide 9: 2014 – Getting it done
2014 – Getting it done Ungani development Ungani 1 cleanup, well underway Ungani 2 producing 1,000 bopd Production ramp up to 1,500 bopd Loading of first 30,000 barrels of oil from the Wyndham export facility Drilling Ungani 3 spudded using Crusader 405 drilling rig Ungani 3 total depth,
Slide 10: Ungani Phase 1: EPT Project Overview
Ungani Phase 1: EPT Project Overview Transport to Storage & export Shipping to Ungani Field Wyndham Tank Farm from Wyndham refinery Discovered 2011 Trucking of crude Crude oil storage Crude shipping 50m+ oil column, 900km to existing tank Wyndham in Cambridge Gulf Wyndham to regional refineries. 100
Slide 11: Ungani Laurel dolomite depth map
Ungani Laurel dolomite depth map Proposed Ungani-1 and Ungani-3 location Ungani-2 wells Depths ~ 2100m below sea level Viewed from the North 10
Slide 12: Ungani Phase 2: Full field development
Ungani Phase 2: Full field development Major production increase and export from local port Post FID (after U3 well) Facility Upgrade • Permanent high volume export route • All weather operation – pipeline/road/loadout • Staged FID process for optimal development Target 3,000 bopd during 2014, i
Slide 13: Ungani oilfield progression export
Ungani oilfield progression export Phase 2 Phase 1 • Targeting 2015+ • Early production • Requires access to from existing storage or new build facilities facility • Low CAPEX upgrade • Existing load-out to load-out facility facilities exist but • Smaller parcels ship require upgrade size (30,000 bp
Slide 14: Ungani Oil Development
Ungani Oil Development Clear Value Realisation & Growth Path Phase 3 2015+ 15,000 bbl/day Ungani Cluster development (Ungani plus new field discoveries) Ungani Phase 2 2014 5,000 bbl/day Full Field Development Ungani Phase 1 2013/14 1,000 to 2,000 bbl/day Current wells 13
Slide 15: High value Ungani exploration trend
High value Ungani exploration trend Potential for rapid cluster style development growth Ungani oil discovery is a “play opener” • Conventional Vuggy dolomite reservoir • Ungani Nth extended play • Structures are readily imaged by geophysics • Ungani Oil Trend covers over 120 kms by Ungani NthYakka
Slide 16: Ungani trend oil portfolio
Ungani trend oil portfolio High potential for near term Ungani look-a-likes Ungani Flanks Increasing Geological Confidence (GPOS) Praslin Ungani Greater 2014 3D seismic (Jackaroo) Ungani 3D seismic Jackaroo Appraisal and develop drilling North DST Bickley 3D seismic L Eda Kurajong Yakka Fregate W Mu
Slide 17: Laurel Gas - A potential strategic resource
Laurel Gas - A potential strategic resource Independent analysis estimates P50 Prospective Resource >47 Tcf net to Buru Potential world class accumulation • Extensive overpressure at drillable depths • Sweet gas , low CO2, no H2S, high liquids Preparation for appraisal process • Committed to Excelle
Slide 18: World Class Basin Centred Gas Potential
World Class Basin Centred Gas Potential Systematic evaluation of Laurel tight wet gas Point Torment 1 (1992) 180m Laurel gas Canning Basin Fitzroy Trough DST ~60 MCFD Digital Elevation Model 50 km Yulleroo 4 (2013) TD 3846m Valhalla North 1 (2012) 1363m Laurel Gas Derby Drilled in syncline
Slide 19: The way forward
The way forward Unlocking value is achieved by aligning key stakeholders Strong and enduring Traditional Owner relationships • Proactive Community engagement and transparent activities • Skills development, job creation and contracting • Sustainable business creation • Equitable value sharing that d
Slide 20: Aug 13' A$100M+ Capital Program
Well balanced capital management program Minimal dilution, activity based & supports quality program 2013 – 2014 FORECAST NET BURU EXPENDITURE & SOURCES (does not include SPP funds or Ungani revenue) 160.0 - Aug 13’ A$100M+ Capital Program* 25.5 Institutional Project Funding 140.0 35 placement • Ung
Slide 21: Fully Funded Forward Program
Well balanced capital management program Minimal dilution, activity based & supports quality program • Ungani Oilfield - A$92M gross, $46M net, for full field development at up to Fully Funded Forward Program* 7,500 bopd • Laurel Wet Gas - $54M gross, $27M net for stimulation and flow testing of up
Slide 22: Buru Energy: Creating a material & sustainable growth story
Buru Energy: Creating a material & sustainable growth story 2013 2014 2015 BUILDING THE PLATFORM FOR MATERIAL CASH FLOW TARGETED OIL EXPANSION, LONG TERM GROWTH MAJOR DERISKING OF GAS & CONFIRMING GAS VIABILITY, CONTINUOUS HIGH VALUE MULTI-RIG APPRAISAL & EXPLORATION DRILLING EXPLORATION GROWTH Sa
Slide 23: Sustainable growth pathway
Sustainable growth pathway High Value and Balanced Work Program • Focus on Ungani development and cash flow • Definitive gas program and pathway to commercialisation • Focus on Ungani trend exploration and • Derisking other areas ahead of longer term campaign style programs Major Capability Build •
Slide 24: Buru's vision
Buru’s vision WA’s own powerhouse PHASE 1 Oil Export: 4Q 2013-2025+ Oil export facility, >1-2+mmbo/yr export Broome Wyndham Port Hedland PHASE 4 : LNG sales 2020+ New or gas sales to existing LNG plants along Dampier NW Shelf PHASE 2 Powering the North & Midwest: •Target 30 – 200MW power •<300BCF sa
Slide 25: www.buruenergy.com
E cur Energy An Australian ASX listed company focused on exploring and developing the petroleum resources of the Canning Superbasin